Local news daily left
me in awe at the present state of Persons with Disability (PWD) within our
Economy.
The
article Titled “ The Disabled still pay tax despite exemptions” goes
something like this; in Kenya it is estimated that about 4 million people
suffer from various forms of disability, both mental and physical.
I
want to make this point across from the get-go , According to the Act 14
of 2003 – Persons with Disability and Persons with Disabilities (Income
Tax Deductions and Exemptions) Order, 26th March 2010 has taken into
consideration PWD in terms of their incomes and their contribution toward taxes
in Kenya.
According
to the Act Sec 2 –Disability is described as a physical, mental or other
impairment including any visual, hearing, learning or physical incapability,
which impacts adversely on Social, Economic or Environmental participation.
Having
the definition right, a question may be posed: How do I benefit as a
Disabled individual as per this Act?
The
answer lies in the Persons with Disabilities order 2010 by the then Finance
Minister Uhuru Kenyatta.
Sec
4(1) of the Order states that a person with disability may apply for exemption
of Income tax to the Commissioner of Domestic taxes through the National
Council of Persons with Disability and subject to (2) the amount allowable
shall be Kshs 150,000 per month.
In
addition to the above deduction the following shall be considered when
determining total income:
(a) Non-reimbursed
amounts paid by a person with disability for treatment or admission in a hospital,
nursing home or any other health facility;
(b) Non-reimbursed
amounts paid by a person with disability for prescription drugs
for that person’s use;
(c) Non - reimbursed
amounts paid by a person with disability for goods and services that allow the
person with disability to receive home care or personal care; or
(d) Cost of disability
related assisting devices.
Provided
the total of the above considerations doesn’t exceed Kshs 50,000 per month.
A
recap of the above a person who qualifies for Disability under the act shall
qualify to exemption of the first Kshs 150,000 of their income per month and an
addition of
Kshs 50,000 per month for the expenses for maintaining his/her
condition.
Let’s
go back to why I was left in awe;
As
per the daily 15,000 people may be eligible to the exemption stated above, but
they in all unknowing or knowingly still pay their taxes month in month out. As
per the dated release of the newspaper article only 200 individuals were
benefiting from the above exemptions, and 700 individuals pending for approval,
a number as per the author still very low.
In
the article the then Communication Officer of the Council was of the opinion
that many disabled people are not yet aware that they were entitled to the tax
exemptions on their salaries and they (Council) was going to boost awareness on
the same.
How
hard could it be for a person qualifying for this exemption to apply to the
Commissioner of Domestic taxes?
First
the individual needs to register with the National Council of Persons with
Disability (NCPWD) , a process as per their online requirements ;
1.
A
copy of PIN Certificate
2.
A
certified copy of current pay slip where applicable
3.
A
copy of the national Identification card
4.
A
copy of a doctors medical report from the Government Gazetted Hospitals
5.
A
letter from the employer were applicable stating the nature of disability
As
per the guidelines of Kenya Revenue Authority (KRA) under the legal notice
no.36
1.
The
individual will then present himself for interviews before the Domestic Tax
department officers in the nearest KRA offices.
2.
He
will also provide any relevant information required to support the application
as called upon.
Area
of Concern: When our government offers such incentives to persons with
disability, it does not in any way consider them less equal to other. A point
should be noted here that, by doing so the government through the Ministry of
Finance is only trying to lighten the plight being faced by these persons that
may arise suddenly and if such considerations are not considered, an individual
who was productive before the disability may be tied down by costs, medical
expenses or the actual disability.
Disclaimer: This
article will be adjusted upon receiving further information from the National
Council of Persons with Disability
Ref
- 1. Standard Digital news updated Wednesday, July 14 2010 at 00.00 GMT
- 2. Act 14 0f 2003- Persons With Disability
- 3. Persons with Disabilities (Income Tax Deductions and Exemptions) Order, 2010
- 4. http://www.kra.go.ke
- 5. http://www.ncpwd.go.ke
- 6. http://www.ncpwd.files.wordpress.com
- 7. http://www.kenyalaw.org/klr/index.php?id=445
